ITV

Tag: Dick Parsons

  • Time Warner’s Q3 revenues up 7%

    Time Warner’s Q3 revenues up 7%

    MUMBAI: US media conglomerate Time Warner has reported financial results for its third quarter ended 30 September, 2006.

    In the quarter, revenues rose by seven per cent over the same period in 2005 to $10.9 billion, led by growth at the cable and networks segments. Adjusted operating income before depreciation and amortisation climbed 16 per cent to $2.9 billion, reflecting double-digit increases at the cable and AOL segments as well as gains at the networks and publishing segments. This growth was offset partly by a decline at the Film segment. Operating income was up one per cent to $1.7 billion.

    Time Warner chairman and CEO Dick Parsons said, “Time Warner continues to build momentum and deliver value for our shareholders. This quarter’s results position the Company to meet all of our full-year financial objectives. We’re particularly encouraged by AOL’s early progress in making the transition to an advertising-supported business.

    ” Just as importantly, Time Warner Cable is generating outstanding results, even while successfully integrating its newly acquired cable systems. In addition, our capital allocation efforts continue to drive incremental value – including our $20 billion share repurchase programme as well as this year’s more than $20 billion of acquisitions and almost $4 billion of announced or completed non-core asset divestitures.”

    Revenues at AOL fell by three per cent ($58 million) to $2.0 billion, due to a 13 per cent decrease ($210 million) in subscription revenues, offset in part by a 46 per cent increase ($151 million) in ad revenues. The decline in subscription revenues was due primarily to a decrease in domestic AOL brand subscribers, which reflects in part AOL’s previously announced plan to offer its e-mail, certain software and other products free of charge to broadband users in the

    US ad revenues reflected strong growth in sales of advertising run on third-party websites generated by Advertising.com, as well as display and paid-search advertising. At the network segment (Turner Broadcasting, HBO and The WB Network) revenues rose by four per cent ($100 million) to $2.5 billion, reflecting higher subscription and ad revenues, including the consolidation of Court TV ($60 million), offset partially by lower Content revenues.

    Subscription revenues climbed nine per cent ($125 million), due to higher rates and, to a lesser extent, increased subscribers at Turner and HBO as well as the consolidation of Court TV ($17 million). Ad revenues were up by six per cent ($42 million), led by 16 per cent growth at Turner, including Court TV ($42 million), offset partly by a 36 per cent decrease ($48 million) at The WB Network, which ceased operations on September 17, 2006.

    The 23 per cent decline in content revenues ($72 million) is related to a decrease at HBO, due mainly to a difficult comparison to the prior year quarter, which included higher syndication sales of Sex and the City. For the quarter, Cartoon Network posted gains among kids 6-11 in both prime-time and total-day delivery compared to the prior year period.

    Revenues from films fell by 10 per cent ($260 million) to $2.4 billion, due to difficult comparisons to the prior year period. The current quarter included revenues from Superman Returns while overall theatrical revenue declined from the prior year quarter, which included results from Charlie and the Chocolate Factory, Batman Begins and Wedding Crashers.

    The company also reaffirmed its 2006 full year business outlook. It continues to expect that its 2006 full-year growth rate will be in the low-double digits.

  • Time Warner to sell AOL Internet business in UK

    Time Warner to sell AOL Internet business in UK

    MUMBAI: Time Warner will sell its AOL Internet business in the UK for $688 million to mobile phone retailer Carphone Warehouse Group.

    Completion is subject to EU competition authority clearance and is expected to take place by 31 December 2006.

    Under the agreement, Carphone Warehouse will acquire AOL’s Internet access customer base in the UK as well as the supporting management and infrastructure (the “Access” business). For its part, AOL will provide co-branded portal, content and other audience services and will manage the online advertising sales for Carphone Warehouse’s combined broadband customer base through a revenue-sharing agreement, according to a company statement. 

    The total cash consideration is £370m, of which £250m will be paid on completion and the balance paid in three instalments over the following 18 months. The consideration is being funded by an extension of existing bank facilities.

    The transaction is due to complete by 31 December 2006 and is subject to EU competition authority clearance. At this stage it is anticipated that the acquisition will increase current year pre-tax profits by approximately £10m (subject to completion by 31 December 2006), and next year’s pre-tax profits by £30-40m.

    Carphone operates the MViva mobile Internet portal. The deal gives the company a broadband customer base of about 2 million customers, vaulting it to third place among UK broadband service providers. AOL will continue to manage online advertising sales for the service and will share in those revenues.

    Commenting on the acquisition, Carphone Warehouse CEO Charles Dunstone said: “The acquisition of AOL’s UK Internet access business is transformational for our broadband business. This deal gives us significant scale to complement the rapid organic growth of our free broadband proposition. In addition, the joint development of AOL’s already successful audience platform will bring us new advertising and content revenues in a proven and low risk manner.”

    Time Warner chairman and CEO Dick Parsons said: “This agreement completes the restructuring of our AOL Europe businesses that both advances AOL’s strategic transition to an advertising-supported business model and underscores Time Warner’s commitment to shaping its portfolio of assets to drive the greatest growth possible. On both fronts – as well as across our company – we’re successfully building critical momentum to the benefit of our shareholders. As a leading provider of audience services in Europe, AOL will be better positioned than ever to continue to grow a cohesive online advertising business across a region that’s key to our future progress.”

    AOL’s Carphone deal follows an announcement that Neuf Cegetel, the French telecommunications network operator, plans to sell an 18.5 per cent stake in its business in order to raise around $957 million to fund its acquisition of AOL’s French Internet access business. Time Warner will also sell AOL Germany’s Internet business to Telecom Italia for $870 million.

  • Time Warner 2Q revenue grows marginally

    Time Warner 2Q revenue grows marginally

    MUMBAI: US media conglomerate Time Warner has reported financial results for its second quarter ended 30 June 2006.

    Revenues rose by one per cent over the same period in 2005 to $10.7 billion, led by growth at the cable and networks segments. Adjusted operating income before depreciation and amortisation climbed seven per cent to $2.7 billion, reflecting double-digit increases at the cable and filmed entertainment segments as well as a gain at the networks segment.

    This growth was offset partly by declines at the publishing and AOL segments. Operating income rose to $1.8 billion from a prior year loss, reflecting primarily higher adjusted operating income before depreciation and amortisation and the absence of the $3 billion in legal reserves related to securities litigation recognized in the prior year quarter.

    Time Warner chairman and CEO Dick Parsons said, “We are pleased with this quarter’s results, which put us firmly on track to achieve our full-year financial objectives. Especially significant was our generation of Free Cash Flow over the first half of the year, totaling more than $2.6 billion, or 49 per cent of our Adjusted OIBDA. Our cable, filmed entertainment and networks segments delivered standout operating performances, while AOL posted a better-than-expected quarter. Key to these results were impressive strength in AOL’s advertising revenues and across-the-board subscriber and profit growth at Time Warner Cable.

    “With the closing of the Adelphia-Comcast transaction, Time Warner Cable is now focused on integrating and upgrading the acquired systems and setting the stage for an aggressive deployment of Time Warner Cable’s advanced digital video, high-speed data and digital phone services in the coming months. In addition, we are continuing to return substantial value directly to our shareholders – including repurchasing 14 per cent of our outstanding common stock for approximately $11.7 billion since starting the programme last year.”

    Television networks (Turner Broadcasting, HBO and The WB Network) revenues rose by nine per cent to $2.7 billion, reflecting higher subscription and ad revenues – including the consolidation of Court TV ($65 million). Subscription revenues climbed nine per cent due to higher rates and increased subscribers at Turner and HBO as well as the consolidation of Court TV ($20 million), offset in part by a favorable audit claim settlement in the prior year quarter.

    Ad revenues were up eight per cent led by an 11 per cent growth at Turner, including Court TV ($43 million), offset partly by a nine per cent decrease at The WB Network. Content revenues increased by seven per cent due primarily to higher ancillary sales of HBO’s original programming.

    At AOL, revenues declined by two per cent to $2.0 billion, due to an 11 per cent decrease in subscription revenues, offset in part by a 40 per cent increase ($129 million) in ad revenues. The decline in subscription revenues was due primarily to a decrease in domestic AOL brand subscribers and an unfavorable impact from changes in foreign currency exchange rates. The growth in ad revenues reflected strong growth across each of the major ad categories – display, pay for performance and paid-search.

    Revenues from movies declined by 10 per cent to $2.4 billion, due primarily to difficult comparisons to higher home video revenues in the prior year quarter, which included Ocean’s 12 and The Aviator as well as several seasons of Seinfeld. Additionally, the second quarter of 2005 had benefitted from revenue from theatrical product on television, including various Harry Potter availabilities.